GeM Set to Invite Foreign Bids in FY25 Post Public Procurement Opening In UK & UAE FTAs

New Delhi, May 20 (KNN) India’s public procurement portal, Government e-Marketplace (GeM), is preparing to allow foreign suppliers to bid on government tenders and is introducing rate contract tenders to streamline large-scale purchases.

The platform aims to facilitate transactions worth Rs 7 lakh crore in the financial year 2025.

Under current regulations, foreign firms can only participate in contracts exceeding Rs 200 crore. “We will decide the modalities for foreign supplier participation soon,” said GeM CEO P.K. Mihir. This development aligns with recent trade agreements, including FTAs with the UAE and UK, which open government procurement to partner countries.

GeM is also working on expanding its scope to include rate contracts—long-term agreements with fixed prices—and work contracts. Rate contracts could cover essential public health procurements like medicines and equipment.

Work contracts, which form about 90 per cent of global public procurement, include activities like construction, repairs, and maintenance of infrastructure.

In FY 2024, GeM posted a record Rs 5.43 lakh crore in procurement, marking 35 per cent growth. Of this, 61 per cent comprised services such as drone-as-a-service for AIIMS and insurance solutions for over 1.3 crore people.

Since its inception in 2020-21, GeM has processed over 2.8 crore orders worth Rs 13.4 lakh crore. Daily, it handles over 20,000 orders worth Rs 1,503 crore.

Currently, it supports 1.63 lakh buyers and 22.92 lakh sellers, including all central government departments, PSUs, and all 36 States and Union Territories. Eight states have made GeM use mandatory.

“This year, our focus is on increasing adoption across more states,” added CEO Kumar, highlighting efforts to deepen the platform’s reach and efficiency in public procurement.

(KNN Bureau)